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Signing a New Vendor Agreement? Consider This First
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Trade Publication Article
Signing a New Vendor Agreement? Consider This First
2016
Overview
Credit unions are constantly entering into agreements with third-party vendors ranging in criticality from vendors that implement a new core processor to vendors that provide custodial services. Regardless of the vendor, credit unions have a regulatory obligation to protect confidential member information. Therefore, it is imperative for credit unions to address the data breach threat by ensuring there are adequate protections incorporated into their vendor agreements to avoid potential liability resulting from unauthorized access or use of their confidential information. Despite the fact that each third-party vendor agreement includes different contractual terms, credit unions should make sure that the following five provisions are addressed in some capacity. First, the agreement must state what information the parties consider to be \"confidential.\"
Publisher
ALM Media Properties, LLC
